Generally, when must a real estate salesperson deposit earnest money or other trust funds received from a client?

TRUST FUND HANDLING TIMING: When a salesperson receives earnest money or other trust funds, they must handle them promptly per state law. TYPICAL RULES: The salesperson must turn the funds over to their BROKER (or deposit per broker/state procedure) promptly — often immediately or by the next business day; the broker deposits them into the TRUST/ESCROW account within a state-specified time (commonly within a few business days, varies by state); the salesperson cannot hold funds personally or deposit them in personal accounts; NO COMMINGLING: Trust funds must go into the designated trust account, never mixed with personal/business funds; STATE-SPECIFIC: Exact deadlines vary by state (consult your state's rules) — but the principle is PROMPT handling and deposit; RECORDS: Detailed records of all trust funds must be maintained; CONSEQUENCES: Mishandling trust funds (delays, commingling, conversion) is a serious violation leading to discipline; while the exact timeframe is state-specific, all states require prompt, proper handling of client trust funds — salespeople typically deliver funds to the broker immediately, and the broker deposits them into the trust account within the required period; this is core state license law tested on the exam.